FAC3704
OCT/NOV EXAM 2025
UNIQUE NO.
DUE DATE: 15 OCTOBER 2025
, FAC3704 Oct/Nov 2025
QUESTION 1 (50 marks) (90 minutes)
You have been appointed as the Group financial accountant of the Pumpkin Ltd group. Your
tasks include preparing the consolidated financial statements of the Pumpkin Ltd group and
assisting the financial director, Mr Fatman Ukutya, with ad-hoc queries.
The following are extracts from the trial balances of the entities in the Pumpkin Ltd group for
the year ended 28 February 2025:
Pumpkin Peanut
Ltd Ltd
Dr/(Cr) Dr/(Cr)
R R
Property, plant and equipment at cost price ............................. 6 532 500 3 132 750
Investments in Peanut Ltd at cost price .................................... 731 250 -
Trade and other receivables ..................................................... 576 680 165 750
Cash and cash equivalents ...................................................... 411 157 19 500
Inventories ................................................................................ 246 025 102 700
Cost of sales ............................................................................. 3 753 750 2 119 841
Other expenses ........................................................................ 384 274 418 165
Income tax expenses ............................................................... 1 010 003 570 375
Ordinary dividends paid – 28 February 2025............................ 487 500 81 250
Share capital - 1 300 000 ordinary shares ................................ (1 300 000) -
Share capital - 325 000 ordinary shares ................................... - (650 000)
Retained earnings – 1 March 2024 .......................................... (2 100 150) (325 000)
Accumulated depreciation ........................................................ (1 803 750) (831 675)
Deferred tax .............................................................................. (75 660) (36 150)
Trade and other payables ........................................................ (974 805) (117 000)
Revenue ................................................................................... (6 825 000) (3 854 256)
Other income ............................................................................ (1 053 774) (796 250)
- -
Additional information
1. On 1 September 2022, Pumpkin Ltd acquired control over Peanut Ltd by acquiring 70% of
the issued ordinary shares of Peanut Ltd for R613 420. On the acquisition date, the shares
of Peanut Ltd had a listed market price of R3,00 each. On the acquisition date, the net
assets of Peanut Ltd consisted of the following:
Fair Carrying
value amount
R R
Land ......................................................................................... 471,250 471,250
Machinery ................................................................................ 250,250 146,250
Inventory .................................................................................. 97,500 97,500
Trade receivables ..................................................................... 162,500 162,500
Bank ......................................................................................... 16,250 16,250
Trade payables ........................................................................ (113,750) (113,750)
884 000 780 000
6
OCT/NOV EXAM 2025
UNIQUE NO.
DUE DATE: 15 OCTOBER 2025
, FAC3704 Oct/Nov 2025
QUESTION 1 (50 marks) (90 minutes)
You have been appointed as the Group financial accountant of the Pumpkin Ltd group. Your
tasks include preparing the consolidated financial statements of the Pumpkin Ltd group and
assisting the financial director, Mr Fatman Ukutya, with ad-hoc queries.
The following are extracts from the trial balances of the entities in the Pumpkin Ltd group for
the year ended 28 February 2025:
Pumpkin Peanut
Ltd Ltd
Dr/(Cr) Dr/(Cr)
R R
Property, plant and equipment at cost price ............................. 6 532 500 3 132 750
Investments in Peanut Ltd at cost price .................................... 731 250 -
Trade and other receivables ..................................................... 576 680 165 750
Cash and cash equivalents ...................................................... 411 157 19 500
Inventories ................................................................................ 246 025 102 700
Cost of sales ............................................................................. 3 753 750 2 119 841
Other expenses ........................................................................ 384 274 418 165
Income tax expenses ............................................................... 1 010 003 570 375
Ordinary dividends paid – 28 February 2025............................ 487 500 81 250
Share capital - 1 300 000 ordinary shares ................................ (1 300 000) -
Share capital - 325 000 ordinary shares ................................... - (650 000)
Retained earnings – 1 March 2024 .......................................... (2 100 150) (325 000)
Accumulated depreciation ........................................................ (1 803 750) (831 675)
Deferred tax .............................................................................. (75 660) (36 150)
Trade and other payables ........................................................ (974 805) (117 000)
Revenue ................................................................................... (6 825 000) (3 854 256)
Other income ............................................................................ (1 053 774) (796 250)
- -
Additional information
1. On 1 September 2022, Pumpkin Ltd acquired control over Peanut Ltd by acquiring 70% of
the issued ordinary shares of Peanut Ltd for R613 420. On the acquisition date, the shares
of Peanut Ltd had a listed market price of R3,00 each. On the acquisition date, the net
assets of Peanut Ltd consisted of the following:
Fair Carrying
value amount
R R
Land ......................................................................................... 471,250 471,250
Machinery ................................................................................ 250,250 146,250
Inventory .................................................................................. 97,500 97,500
Trade receivables ..................................................................... 162,500 162,500
Bank ......................................................................................... 16,250 16,250
Trade payables ........................................................................ (113,750) (113,750)
884 000 780 000
6
